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10 Employment Benefits

10 Employment Benefits

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Published by Ali Akhter
this is ppt presentation on employment benefits and services
this is ppt presentation on employment benefits and services

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Published by: Ali Akhter on Apr 30, 2013
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EMPLOYMENT BENEFITS

Employee Benefit Programs

Part of Total Compensation Some Government Mandated Some Incentive Related Part of Cost of Doing Business Indirect Compensation

Factors Contributing to Growth of Benefit
Discourage Unions Benefits not Always Taxed Easier to negotiate Than Wages Attitude of General Public

Objectives of Benefit Programs
To Improve Morale To Meet Health and Safety Needs To Attract Good Employees To Reduce Turnover To Reduce Unionism To Maintain a Competitive Position To Enhance the Organization's Image

Basis for Employee Benefits Organizational Objectives Human Resources Objectives Employee Benefit Package Government Regulations Collective Bargaining Employee Participation Employee Needs Financial Resources Recruiting Competition Providing Individual Benefits Communicating Benefits EMPLOYEES .

Employee Benefits Required by Law .

holidays. sickness.Types of Benefits Time-off (vacation. etc.) Legal Social Security Medical Payments Retirement Paid Rest Periods (breaks) Life Insurance .

Categories of Employee Benefits BENEFITS REQUIRED BY LAW Old age and survivors insurance (OASI) Unemployment insurance Workers’ compensation Leaves without pay .

and bereavement leaves .Categories of Employee Benefits PAYMENT FOR TIME NOT WORKED Holidays Vacations Sick leave Supplemental unemployment benefits (SUB) Jury duty. military service.

Categories of Employee Benefits INSURANCE Group life insurance Health care insurance Legal insurance .

Categories of Employee Benefits RETIREMENT BENEFITS Pension plans Deferred compensation plans Pre-retirement counseling .

Categories of Employee Benefits EMPLOYEE SERVICES Employee assistance program Counseling services Educational assistance plans Child care Elder care Food services Health services Legal services Financial planning Housing and moving expenses Transportation pooling/parking Purchasing assistance Credit unions Social and recreational services Awards .

Employee Benefit Costs 30-40% of the Annual Wages Fastest Growing Part of Total Compensation .

holidays.Typical Cost of Benefits TYPES OF BENEFITS Payments for vacations.0 % 1. lunch periods.0 % 7.5% . sick leave. etc. etc.0% .0 % 10.0 % 3. Legally required payments Medical and medically related benefit payments Retirement and savings (employer’s share) Paid rest periods. Miscellaneous benefits Life insurance Total employee benefits as percent of payroll TOTAL PERCENTAGE. ALL COMPANIES 12.5% 43.0% 10.

Health Plan Costs Climb Higher Annually Average Annual Health Plan Costs Per Employee $4000 COST $1500 YEAR .

Flexible Benefits Plan (Cafeteria Plans) Benefit plan that enable individual employees to choose the benefits that are best suited to their particular needs. .

Flexible Benefit Plans Employees Choose Cafeteria Plans Cost Attached Some Government Requirements .

Major Concerns Rising Costs Controlling Costs Legal Concern .

Not Total Coverage Reward for Long Service Originally Now Based on Earnings Philosophy .Pension Plans: Provide for Retirement Income Federal Regulation .

Types of Pension Plans Contributory (joint pay) Non-Contributory (employer pays) Classified by Amount of Benefits to be Paid .

.Noncontributory Plan A pension plan where contributions are made solely by the employer.

Defined Benefit Plan Amount is Specifically Defined Years of Service Required Average Earnings During Certain Years Age at Retirement “Example: Average Annual Salary of Last 3-5 years x number of years of service” .

Benefits Depends Upon Accumulation .Defined Contribution Plan Basis Upon Which the Employer Pays Paid to Thrift Plan. etc. IRA.

Federal Regulation (ERISA) Employee Retirement Income Security Act Informed About Facts Benefits Defined Complex Law .

.Vesting A guarantee or accrued benefits to participants at retirement age. regardless of their employment status at that time.

Vesting Guarantee of Benefits Paid at Retirement Regardless of Last Employment Non-revokable by Employer Vested After XX Years Complex Rules (ERISA) .

3. .Vesting Provisions (General Plans) General Provisions* 1. Nonforfeitable rights increase 20 percent each year until the employee is 100 percent vested in the employer-derived accrued benefits after 7 years of service. 5-Year Vesting: An employee must receive nonforfeitable rights after five years of service to all accrued benefits derived from employer contributions. 2.to 7-Year Vesting: An employee must receive nonforfeitable rights after three years of service to 20 percent of accrued benefits derived from employer contributions.

Disability.Social Security Insurance Guarantee of Income Retirement. Unemployment Time Limits Complex Rules Dedicated Tax on Earnings .

Pension Funds Privately Managed $3 Trillion in Assets Invested in Stocks and Bonds .

Unemployment Insurance Defined Period (26 weeks) Register for Work Requirement Funded by Payroll Tax Amount Based on Wages Supplemental Unemployment Benefits (Private) .

Worker’s Compensation Insurance Federal-or-state-mandated insurance provided to workers to defray the loss of income and cost of treatment due to work-related injuries or illness. .

Worker's Compensation Work Related Accident Compulsory Complex Law Based on Wages Permanent or Partial Disability .

Health Care Insurance Partial Government Funded Mostly Private Insurance .

Why Are Health Care Costs Skyrocketing? Federal Regulation Changes in Pricing Advances in Medicine Malpractice Insurance Labor Costs Over Utilization of Facilities Elder Care Transplants/AIDS/Other .

Health Maintenance Organizations (HMOs) Organizations of physicians and health care professional that provide a wide range of services to subscribers and dependents on a prepaid basis. .

Cost Containment Vehicles HMO (Health Maintenance Organization) Group of Professionals Services for Fixed Amounts PPO (Preferred Provide Organization) Group of Professionals Guarantees Cost Efficiency for Groups Employer Steers Employees to PPO .

Retirement Planning Programs Company Pension Plans Social Security/Medicare Health Care Insurance Personal Financial Planning Legal Concerns Investments/Tax Planning Volunteerism Part-Time Employment Housing Options Relocation .

Silver Handshake An early-retirement incentive in the form of increased pension benefits for several years or a cash bonus. .

Decisions Relating to Pensions DECISIONS ALTERNATIVES Philosophy Earned vs reward Source of funds Contributory vs non-contributory Amount of benefits Defined benefits vs defined contributions Custody of pension funds Insured vs trusteed plans Protections against loss of funds Protection against loss of purchasing Investment problems Where and where not to invest Tax consequences .

Benefit Links Hewitt Associates UCbencom .

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